Saudi and oil

[agchat]

Was told last night that it costs Saudi only ten dollars to produce a barrel of oil. HOWEVER, the article had went on to say that because it is the only source of revenue, and basically the countries only income, that ninety dollars a barrel is actually needed to keep economics properly balanced and sustained in the Arab area. What have others heard? Errolanderson what is your take?

[furrowtickler]

Well something is up, the Saudi's just set up there own Muslim coalition to "stabilize" the area. And it does not include Syria or Iran - this could get interesting .
You have the U.S. And it's group of merry men , Russia and Syria with Iran throwing rocks at others, then now the Saudi coalition of 34 Muslim countries .
All have their own agenda ....... I see $50 oil before it hits $20.

[errolanderson]

furrow . . . agree. There is a lot of geopolitical turbulence that can lend support to global oil prices.

U.S. rate hike or no rate hike tomorrow may cap the U.S. dollar strength. Should U.S. buck sell-off soon, this would also lead to a recovery in crude and the Cdn dollar.

But reality is; it's anyone's guess. Many factors now pushing 'n shoving.

[cottonpicken]

There's a chart somewhere on the net showing social programs of oil producing nations tied to oil saud was was the highest at somewhere around ninety. Their deficits and balance of trade fell of a cliff but they got a lot of leway with having no debt

How do you balance the risk scale with one big bomb going off and fundamentals?